Post on 15-Nov-2018
Table of Contents
Introduction - IT Flexi Staffing
10-13
Market Analysis – IT Flexi Staffing
14-18
Industry Point of View - IT Flexi Staffing
19-26
Technology Trends 27-30
Sectoral Analysis - IT Flexi Staffing
31 -47
Captives – Key Market for IT Flexi Staffing
48-49
State Wise Analysis – IT Flexi Staffing
50-54
Glossary and Notes 55-58
Indian Stafng Federation (ISF) comes to be in its 6th year of existence with a strong representation of over 85 members employing over 900,000 exi-workers. This is indeed something to be proud of for the apex body of the industry. Over the past decade we have provided a stepping stone, to over 8.5 million youth, towards a better and brighter career. We have successfully created an eco-system which provides exibility, administrative efciencies and awless compliance for Corporate India to enable them to expand and grow their business. We have upheld the law of the land at each step and ensured exibility and security at the same time consistently. Current study conducted by KPMG on behalf of ISF aims to highlight the scale, impetus and status of the IT stafng industry in India. The report has been made analytical to bring forth the growth of IT exi stafng in the next 2-4 years across high contributing technologies in the top states and the sectors of the country. This shall help to have an understanding of the factors driving the economic and employment growth. The study shows that the IT stafng industry which is pegged to grow at 14-16% per annum till 2021 and is the highest contributing employer of exi staff in India. By the current economy, this will also be among the top few industries to propel the employment growth for the country. This is despite the fact that the IT industry is undergoing unprecedented transition phase with the automation, showing its impact on a global scale. The report interestingly suggests that most of the contribution to the overall IT exi-staff size is likely to come from these sectors – Startups, Ecommerce, BFSI, Retail, IT and Manufacturing and from these states-- Karnataka, Maharashtra and Delhi (NCR).
Foreword
Rituparna�ChakrabortyPresident, Indian Stafng Federation
Information Technology is the bedrock for development in a rapidly changing global environment. Indian Stafng Federation represents the stafng companies who not only meet the demands & challenges arising from the ever changing dynamic eld of IT but also devise bold strategies to support the growth of the industry, providing them the just in time support on projects, manpower and being the backbone to a host of issues such as reliable infrastructure, skilled human resources and other essential issues of capacity building. In the report as conducted by KPMG, Indian IT Flexi Stafng Industry market is worth USD 3.04 Bn in FY 2017, which is projected to garner USD 5.3 Bn by FY 2021. Foreign Government policies and Automation are the key determinants for further growth of IT Flexi Stafng. Almost 55% of Indian Companies engage with IT Flexi staff for Infrastructure Management, while niche skillset and Just in time requirement are the major reasons for hiring IT exi Staff. The turnover of the industry across the globe is at USD 59 Bn and Indian IT Stafng industry contributes 4.8%. The report also highlights that India is 28% of APAC IT stafng industry, which makes India a signicant contributor to the IT Stafng industry. The industry is still at a nascent stage and has a lot of unexplored opportunities.
From�the�Chapter�Chair's�Desk
Mehul�ShahChairperson – Information Technology Chapter; Indian Stafng FederationBoard Member and Trustee, Indian Stafng Federation
As an enabler of the IT industry, the staffing industry and the members of Indian Staffing Federation contribute to a better mobilisation of employment across the technology and trend cycles. Thanks to the combined strength of the staffing experts, Information Technology stalwarts and specialists, the workforce around the world are not only given the dignity and recognition but also adapted to the changing dynamics of the technology. The faster response supports the industry enables to produce better results through alignment, adaptation, security and prosperity.
The Report on the Indian IT Staffing Industry 2017 of Indian Staffing Federation documents enabling factors that propels the growth of industry. The compilations of robust facts and figures from the research conducted by KPMG shows the strength and potential of the industry. The number of people employed who were able to access the work after intermediation by Indian staffing companies reached 0.26 million people in 2017 which will be close to 0.32 mn by 2021, including a majority of youngsters! There is much more information to be found in the report. I invite you to browse through it and find out for yourself.
In addition to the hardcopy of this report, a complementary on-line version is available with additional data. This will make it easier for you to browse through the report and share its content more easily. If you have any questions after reading the report, please feel free to get in touch with the Indian Staffing Federation office through info@indianstaffingfedration.org
Suchita Dutta Executive Director, Indian Staffing Federation
From the Executive Director’s Desk
Executive Summary
Indian IT Flexi Staffing Industry is worth USD 3.04
Bn in FY 2017
Mobility, Cloud Computing and Cyber Security are
currently the key technology drivers
Indian IT Flexi Staffing Industry is 4.8% of Global and 28% of APAC IT Flexi
Staffing Industry
IT Flexi Staffing Industry is expected to grow by 14-16%
p.a till FY 2021
IT Flexi Staffing market penetration with respect to total
IT Workforce in India is 5.6%
Indian IT Flexi Staffing market is projected to garner
USD 5.32 Bn by FY 2021
New technologies like Automation, Machine Learning
will drive growth of IT Flexi Staffing Industry
55% of Indian Companies engage with IT Flexi
staff for Infrastructure Management
Indian IT Flexi Staffing | 06
On Time Delivery and Upscaling may further boost the growth of IT Flexi Staffing
IT/ITES has highest market penetration of 6% followed by Healthcare with 5.9%
Most Organizations hire IT Flexi Staff for a service
tenure of 6-12 Months
Niche skillset and Just in time requirement are the major
reasons for hiring IT Flexi Staff
IT Flexi Staff is expected to grow fastest in Startup &
Ecommerce Sector by 17.3%The IT Flexi Staffing Market
is largest in the state of Karnataka (USD 1.05 Bn) followed by Maharashtra
(USD 0.48 Bn)
IT Flexi Staff hired for New Product Development
generally have the highest bill rate
Karnataka, Maharashtra, NCR and Telangana are the 4 states dominating
the IT Flexi Staffing Industry in India
Key components of IT Flexi Staffing Industry
IT Flexi Staff Benefits of IT Flexi Staff
End Users Benefits of End User
IT Flexi Staffing Companies hire flexi staff and deploy
them at client offices for their various IT requirements
End users sign contracts with Staffing companies and pay them to render services
of IT Flexi Staff
IT Flexi staff work in client companies on pre-defined
contractual terms for their IT requirements
KPMG Research and Analysis
IT Flexi Staff
IT Flexi Staffing Industry
IT Flexi Staffing
Companies
End Users
Adequate Pay Flexibility in Staff Planning
Medical Insurance and Benefits Cost Benefits
Experience in diverse Projects and sectors
Niche Skillsets availability
Decent Annual Increment Compliance Efficiency
Statutory Benefits and Perks Just in Time fulfilment
Skill Improvement and Training
Focus on Core Business
Indian IT Staffing Report 2017 | 11
IT Flexi Staffing Companies – Key Capabilities & Offerings
IT staffing augmentation It involves outsourcing of manpower to clients on skill or project requirement for a defined period of time
Recruiting services Providing solution to hire and retain best talent as Contract or Permanent workforce for the client companies
Training and development program Providing cost efficient training to enhance and develop skillset as per business requirement
Master vendor program It includes management of contract
workforce for clients like resource transitions, compliance management
and payroll administration
Professional staffing The service includes understanding the
needs of client and finding talent requiring the given set of professional skills
Managed Services Management of projects, programs
and outsourced functions to improve operations
KPMG Research and Analysis
12 | Indian IT Staffing Report 2017
IT Flexi Staffing Industry vis-à-vis IT Services Industry
KPMG Research and Analysis
Deliverables
Reporting Lines
Billing Structure
Deployment Responsibility
Bench Concept
PhysicalInfrastructure
Staff work from the client location, thus less of physical infrastructure is required
Staff may provide offsite support to the client thus the cost of physical Infrastructure is higher
Each of the Flexi staff reports to a designated individual who is responsible for their utilization and
getting output
Project team members report to team lead who in turn reports to project steering committee. Team members do
not report individually to the end client
It is usually Monthly based, as per the agreedbill rate per person Billing is usually time based or project specific
The client decides the quality and size of Flexi staffrequired for the project. Client has visibility
of the staff hired
The IT services firm also decides on quality and staff size required for the project. Clients typically do not
have visibility of the staff hired
There is no bench facility in IT Flexi Staffing andemployees are not readily available
IT services firms have ability of ondemand filling of requirements
Contractual or contingent manpower are hired for different IT requirements
Projects are outsourced and implemented by IT Services Firm
IT Flexi Staffing IT Services
Indian IT Staffing Report 2017 | 13
`
Indian IT Flexi Staffing Industry is USD 3.04 Bn in FY 17
NASSCOM, Data.gov.in, ISF- Nilesen report on Flexi Staff, KPMG Research and Analysis * Market Penetration of IT Flexi Staff is with respect to Total IT Headcount in India
IT/ITES Sector contributes to 90% of Indian IT Flexi Staffing
Industry
Export contributes to 70% of total IT Flexi
Staffing Industry in India
Indian IT Flexi Staff is 11% of Total Flexi Staff
(2.4 Mn) in India
IT Flexi Staffing Market size
USD 3.04 Bn IT Flexi Staff Penetration in India
5.6%* IT Flexi Staff in India
0.26 Mn
Indian IT Staffing Report 2017 | 15
Indian IT Flexi Staffing Industry is 28% of APAC IT Flexi Staffing Industry
Global IT Flexi Staffing Market size $ 59Bn in FY 2016
Indian IT Flexi Staffing Industry is 4.8% of Global IT Staffing Industry
Indian IT Flexi Staffing Industry is still at a nascent stage and has a lot of unexplored opportunities
Source: Staffing Industry Analyst and KPMG Research and Analysis
IT Flexi Staffing Market
Size in FY16 USD 31 Bn
The Americas EMEA APAC
IT Flexi Staffing Market Size in FY 16 USD 17 Bn
IT Flexi Staffing Market
Size in FY 16 USD 10 Bn
South America
North America
Middle East
Europe
Africa
Australia
Asia
16 | Indian IT Staffing Report 2017
IT/ITES Sector employs 90% of India’s IT Flexi Staff
KPMG Research and Analysis
Total IT Workforce
4.62 Mn
IT/ITES Industry -IT Workforce
3.9 Mn
IT/ITES Domestic –IT Workforce
0.8 Mn
IT/ITES Domestic IT Flexi Staff
0.048 Mn
IT/ITES Export –IT Workforce
3.1 Mn
IT/ITES Export IT Flexi Staff
0.186 Mn
Non IT/ITES Industry -IT Workforce
0.72 Mn
Non IT/ITES – IT Flexi Staff
0.026 MnIT Flexi Staff Penetration inIT/ITES 6%
IT Flexi Staff Penetration in Non
IT/ITES 3.6%
``
IT Flexi Staff
Total IT Staff in India
Data Source: Base data from data.govt.inand extrapolated by KPMG
Data Source: Nasscom
Indian IT Staffing Report 2017 | 17
Industry is expected to grow by 14-16% YOY till FY 2021
` `
IT Flexi Staffing Industry is expected to grow by
16% in FY 2018
Indian IT Flexi Staff is expected to grow to 0.33 Mn by FY 2021
Foreign Government policies and
Automation are the key determinants for further
growth of IT Flexi Staffing
Technologies such as Automation and Machine Learning
are expected to drive growth of IT Flexi
Staffing
`
Industry is expected to be worth USD 5.32 Bn by FY 2021
$3.04 Bn
2017
$3.53 Bn
2018
$4.08 Bn
2019
$4.67 Bn
2020
$5.32 Bn
2021
KPMG Research and Analysis
18 | Indian IT Staffing Report 2017
IT/ITES Sector employs 90% of India’s IT Flexi Staff
Indian IT Flexi Staffing | 18
Industry Point of View- IT Flexi Staffing
58% of Organizations hire IT Flexi Staff for their Niche Skillsets
KPMG Research and Analysis
Companies adopt IT Flexi Staff for Multiple Reasons
% of respondent companies who cited the factor for hiring IT Flexi Staff Percentages Don’t Add Up to 100%, as some companies hire for more than 1 reason
Flexibility 36%
Niche Skillset 58%
Niche Skillset 58%
Just In Time 42%
Just In Time - To chase deadlines
or for immediate requirements
Flexibility – To provide scalability
in manpower planning
Cost Benefit – To reduce longterm
costs associated with permanent
staff
Company Policies – To comply with firms statutory
policies
Cost Benefit 21%
Company Policies 9%
Niche Skillset – To utilize deep
expertise in niche technologies
20 | Indian IT Staffing Report 2017
55% of Organizations engage with IT Flexi Staff for Infrastructure Management
KPMG Research and Analysis
Infrastructure Management
Applications Support/ Maintenance
New Product/ Project Development
Testing and Quality Assurance % of respondent companies who use IT Flexi Staff in the domain
Percentages Don’t Add Up to 100%, as some companies have demand for more than 1 function
To manage and operate the IT Infrastructure efficiently which needs long term support
To minimize service disruption and reduce downtime using Database and network configuration knowledge
To build, develop and launch new products and applications which needs good programming skills
To develop and execute exploratory tests to ensure product quality and automation skills will be a key growth driver
Infrastructure Management
55%
New Product/ Project
Development 43%
Applications Support/
Maintenance 52%
Testing and Quality
Assurance 30%
Indian IT Staffing Report 2017 | 21
New Product Development is expected to have the maximum growth rate for IT Flexi Staff by FY 2021
IT Flexi Staffing Industry is expected to observe a paradigm shift in demand and revenue of Technology Domains. New Product Development is estimated to have highest revenue and demand growth rate because of constant innovations and requirement of niche skillsets to develop applications where as Infrastructure Management growth rate will reduce due to advent of automation
across different Industries
KPMG Research and Analysis
Revenue Growth Rate
Testing and Quality Assurance
Infrastructure Management
Demand Growth Rate
Application Support and Maintenance
New Product Development
22 | Indian IT Staffing Report 2017
On Time Delivery and Upscaling may further boost the growth of IT Flexi Staffing
57%
Performance Skillset MatchingUpscaling Attrition
46% 22% 20%
% of respondent companies who find these as areas of improvement
Percentages Don’t Add Up to 100%, as some companies find more than 1 area of improvement
Inculcate values like ownership, quick response
time and delivery on commitment
Proper screening of candidate can help in
providing staff with equipped skillsets
Increase resource pool having niche skillsets
and training them on new technologies
Proper guidance and periodic connect to ensure
right fitment in job
KPMG Research and Analysis
Indian IT Staffing Report 2017 | 23
35% 50% 13% 2%
0-2 Years 5-8 Years2-5 Years 8+ Years
Have entry level experience and work in
testing and infrastructure management functions
Have strong domain experience and niche
skillsets to develop and maintain applications
Have experience of 2-5 years and are hired to
manage infrastructure and applications
Have expertise in a particular domain and are
hired to develop niche applications
%. of IT Flexi staff working in industry with this experience level
KPMG Research and Analysis
50% of IT Flexi Staff in the Industry have 2-5 years of experience
24 | Indian IT Staffing Report 2017
49% of organizations hire IT Flexi Staff for 6-12 months service tenure
21% 49%33%
33%
KPMG Research and Analysis
0-6 Months 1-2 Years6-12 Months >2 Year% of respondent companies hiring IT Flexi Staff for above tenure
Percentages Don’t Add Up to 100%, as some companies hire IT Flexi Staff for different tenures
Tenure of Staff
IT Flexi staff hired for 0-6 months are majorly required for immediate requirement
IT Flexi staff hired for more than 2 years period are needed majorly for infrastructure support
IT Flexi Staff hired for 6 to 12 months are typically used for niche skillsets
1year 2 years
0 year1year 2 years
0 year
Indian IT Staffing Report 2017 | 25
IT Flexi Staff hired for New Product Development has highest bill rate
Infrastructure Management
New Product Development
Applications Support & Maintenance
Testing and QualityAssurance
4.5 - 5 LPA 5.5 - 6 LPA 7–7.5 LPA 5.5 - 6 LPA
10.5 -11 LPA 11 -11.5 LPA 14 -14.5 LPA 10.5 -11 LPA
6.5 - 7 LPA 8 - 8.5 LPA 10 -10.5 LPA 8 - 8.5 LPA
13 -13.5 LPA 14.5 -15 LPA 18 -18.5 LPA 13 -13.5 LPA
0-2 Years
5-8 Years
2-5 Years
8+ Years
KPMG Research and Analysis
LPA – Lakhs per Annum
Bill Rates of Staffing Companies
26 | Indian IT Staffing Report 2017
Mobility and Cloud Computing are in maximum demand
% of respondent companies who cited the technology as drivers
Percentages Don’t Add Up to 100%, as some respondents feel more then 1 technology as driver
Mobility has become an important element for customer relationship management
Digitalization with analytics is disrupting different functions across organization
Increasing Cyber threats have led companies to spend huge amount of money on Cyber Security
IoT has been the key focus area in Manufacturing due to growing need for centralized monitoring of infrastructure
Analytics 51%
Cloud Computing is widely adopted across industry to improve operational efficiency
Cyber Security 58%
Mobility 63%
Cloud Computing
63%
Internet of Things (IoT)
26%
Social 14%
KPMG Research and Analysis
Technologies Adoption by Companies
28 | Indian IT Staffing Report 2017
IT Skills/Languages currently in Demand
.NET-Java - Cloud
.NET Oracle .NET Angular JS
.NET PHP
.NET-Java - iOSJava Script – Asp .NET
.NET-Java - Android .NET-Java - UI
.NET
Oracle – Android Development
OracleInfrastructure
Oracle
AnalyticsSkills
R
Python
SQL
SAS
Java
HTML Java
Java PHP
Java –PHP - Sql
Graphic Designers
– Java-Sql
SAP
SAP UISAP IT networking
SAP Hana
Experis IT Survey and KPMG Research and Analysis
Indian IT Staffing Report 2017 | 29
Next Big things in Technology and Key Job Roles
Automation - Quality assurance engineers - Scada Automation engineer
Robotics - RPA Developer - Deployment Engineer
Data Science - Data Scientist - Data Architect
Cloud Computing - Cloud Architect - Migration Engineer
Internet of Things - Wireless Network Specialist - Embedded System Programmer
3D Printing - 3D Modeling Engineer - 3D Designer
Artificial Intelligence - AI Research Scientist - Language Processing Specialist
Social and Mobile - Android/ iOS developer - Digital Marketing
KPMG Research and Analysis
30 | Indian IT Staffing Report 2017
IT/ITES has highest IT Staffing penetration @6.0%
IT Flexi Staff Penetration in India is 5.6%
IT/ITES has highest market penetration followed by Healthcare and Manufacturing
Startup & Ecommerce industry and Chemical oil & gas have the lowest IT Flexi Penetration
Penetration in BFSI is low due to security concerns and regulations
IT Flexi Staff Market Penetration (Sector Wise) in FY 17
KPMG Research and Analysis Market Penetration of IT Flexi Staff is with respect to Total IT Headcount in an Industry
6.0%
IT/ITES
3.2%
BFSI Retail
4.8%
Manufacturing Healthcare
0.5%
Chemical Oil and Gas
Startup and Ecommerce
5.9%4.0%
0.5%
32 | Indian IT Staffing Report 2017
IT/ITES BFSI RetailManufacturing HealthcareChemical Oil and Gas
Startup and Ecommerce
Startup & Ecommerce is projected to grow @17.3%
Startup & Ecommerce Industry will grow fastest followed by IT/ITES and Healthcare industry
Big Data will drive growth in BFSI and Retail whereas IOT will drive growth in Manufacturing
Automation will be a key determinant in growth of IT Flexi Staffing in IT/ITES and Startup Ecommerce
IT Flexi Staff Growth Forecast (Sector wise) in FY18
KPMG Research and Analysis
15.8% 12.7% 12.6% 11.5% 14.1%10.8% 17.3%
Indian IT Staffing Report 2017 | 33
Market Analysis– IT/ITES
Market Penetration and Forecast
Primary Reasons to Hire
Top 3 Technology Drivers
Key Areas of Improvement
Market Penetration FY17: 6.0 %
Growth Forecast FY18: 15.8 %
IT/ITES Headcount (000) Domestic – 48 Export - 186
Just in Time 36%
Flexibility 36%
Niche Skillsets 64%
Skillset Matching 50%
Performance 37%
Cyber Security, 73% Cloud,73% Mobility, 45%
% of respondents who cited the technology as driver
KPMG Research and Analysis Market Penetration of IT Flexi Staff is with respect to Total IT Headcount in the Industry
34 | Indian IT Staffing Report 2017
Skills, Roles and Service Tenures– IT/ITES
Work Experience Contract Tenure
0-2 Year 45%
Testing and Quality Assurance
New Product Development
Infrastructure Management
Application Support and Maintenance
0-6 Months 17%
5-8 Years 17%
1-2 Years 33%
2-5 Years 36%
6-12 Months 58%
8+ Years 2%
>2 Years 25%
Area of Work
KPMG Research and Analysis
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
100050% 42%50% 25%
Indian IT Staffing Report 2017 | 35
Market Analysis- BFSI
Market Penetration and Forecast
Primary Reasons to Hire
Top 3 Technology Drivers
Key Areas of Improvement
Market Penetration FY17: 3.2 %
Growth Forecast FY18: 12.7 %
Niche Skillsets 60%
Flexibility 36%
Just in Time 70%
Skillset Matching 50%
Performance 37%
Mobility, 87% Cyber Security, 73% Cloud, 60%
% of respondents who cited the technology as driver
KPMG Research and Analysis Market Penetration of IT Flexi Staff is with respect to Total IT Headcount in the Industry
36 | Indian IT Staffing Report 2017
Skills, Roles and Service Tenures - BFSI
Work Experience Contract Tenure
0-2 Year 56%
Testing and Quality Assurance
New Product Development
Infrastructure Management
Application Support and Maintenance
0-6 Months 27%
5-8 Years 14%
1-2 Years 27%
2-5 Years 30%
6-12 Months 36%
8+ Years 1%
>2 Years 45%
Area of Work
KPMG Research and Analysis
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
100083% 67%75% 25%
Indian IT Staffing Report 2017 | 37
Market Analysis - Manufacturing
Market Penetration and Forecast
Primary Reasons to Hire
Top 3 Technology Drivers
Key Areas of Improvement
Market Penetration FY17: 4.8 %
Growth Forecast FY18: 12.6 %
Niche Skillsets 33%
Flexibility 33%
Just in Time 33%
Skillset Matching 73%
Performance 83%
Internet of Things, 60% Cloud, 60% Analytics, 40%
% of respondents who cited the technology as driver
KPMG Research and Analysis Market Penetration of IT Flexi Staff is with respect to Total IT Headcount in the Industry
38 | Indian IT Staffing Report 2017
Skills, Roles and Service Tenures - Manufacturing
Work Experience Contract Tenure
0-2 Year 38%
Testing and Quality Assurance
New Product Development
Infrastructure Management
Application Support and Maintenance
0-6 Months 25%
5-8 Years 5%
1-2 Years 75%
2-5 Years 55%
6-12 Months 50%
8+ Years 2%
>2 Years 25%
Area of Work
KPMG Research and Analysis
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
100063% 25%50% 13%
Indian IT Staffing Report 2017 | 39
Market Analysis – Chemical Oil and Gas
Market Penetration and Forecast
Primary Reasons to Hire
Top 3 Technology Drivers
Key Areas of Improvement
Market Penetration FY17: 0.5 %
Growth Forecast FY18: 11.5 %
Niche Skillsets 25%
Flexibility 50%
Cost Benefits 25%
Skillset Matching 50%
Performance 50%
Mobility, 50% Internet of Things, 33% Cloud, 33%
% of respondents who cited the technology as driver
KPMG Research and Analysis Market Penetration of IT Flexi Staff is with respect to Total IT Headcount in the Industry
`
40 | Indian IT Staffing Report 2017
Skills, Roles and Service Tenures– Chemical Oil and Gas
Work Experience Contract Tenure
0-2 Year 40%
Testing and Quality Assurance
New Product Development
Infrastructure Management
Application Support and Maintenance
0-6 Months 33%
5-8 Years 10%
1-2 Years 33%
2-5 Years 40%
6-12 Months 67%
8+ Years 10%
>2 Years 33%
Area of Work
KPMG Research and Analysis
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
100050% 50%50% 0%
Indian IT Staffing Report 2017 | 41
Market Analysis - Retail
Market Penetration and Forecast
Primary Reasons to Hire
Top 3 Technology Drivers
Key Areas of Improvement
Market Penetration FY17: 4.0 %
Growth Forecast FY18: 10.8 %
Niche Skillsets 67%
Cost Benefits 33%
Cost 50%
Performance 50%
Mobility, 86% Cloud, 71% Analytics, 43%
% of respondents who cited the technology as driver
KPMG Research and Analysis Market Penetration of IT Flexi Staff is with respect to Total IT Headcount in the Industry
`
Just in Time 33%
`
42 | Indian IT Staffing Report 2017
Skills, Roles and Service Tenures - Retail
Work Experience Contract Tenure
0-2 Year 34%
Infrastructure Management
Application Support and Maintenance
0-6 Months 20%
5-8 Years 22%
1-2 Years 40%
2-5 Years 36%
6-12 Months 20%
8+ Years 9%
>2 Years 40%
Area of Work
KPMG Research and Analysis
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
100067% 17%33% 17%
Testing and Quality Assurance
New Product Development
Indian IT Staffing Report 2017 | 43
Market Analysis - Healthcare
Market Penetration and Forecast
Primary Reasons to Hire
Top 3 Technology Drivers
Key Areas of Improvement
Market Penetration FY17: 5.9 %
Growth Forecast FY18: 14.1 %
Niche Skillsets 67%
Cost Benefits 33%
Performance 75%
Analytics, 67% Cyber Security, 50% Internet of Things, 33%
% of respondents who cited the technology as driver
KPMG Research and Analysis Market Penetration of IT Flexi Staff is with respect to Total IT Headcount in the Industry
`
Just in Time 67%
Skillset Matching 50%
44 | Indian IT Staffing Report 2017
Skills, Roles and Service Tenures - Healthcare
Work Experience Contract Tenure
0-2 Year 20%
0-6 Months 33%
5-8 Years 14%
1-2 Years 33%
2-5 Years 64%
6-12 Months 67%
8+ Years 2%
>2 Years 33%
Area of Work
KPMG Research and Analysis
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
100075% 25%50% 25%
Infrastructure Management
Application Support and Maintenance
Testing and Quality Assurance
New Product Development
Indian IT Staffing Report 2017 | 45
Market Analysis - Startup & Ecommerce
Market Penetration and Forecast
Primary Reasons to Hire
Top 3 Technology Drivers
Key Areas of Improvement
Market Penetration FY17: 0.5 %
Growth Forecast FY18: 17.3 %
Performance 60%
Mobility, 100% Cloud, 75% Cyber Security, 50%
% of respondents who cited the technology as driver
KPMG Research and Analysis Market Penetration of IT Flexi Staff is with respect to Total IT Headcount in the Industry
Niche Skillsets 67%
Just in Time 67%
Flexibility 33%
Skillset Matching 40%
46 | Indian IT Staffing Report 2017
Skills, Roles and Service Tenures - Startup & Ecommerce
Work Experience Contract Tenure
0-2 Year 20%
Infrastructure Management
Application Support and Maintenance
0-6 Months 33%
5-8 Years 40%
1-2 Years 33%
2-5 Years 30%
6-12 Months 67%
8+ Years 10%
>2 Years 33%
Area of Work
KPMG Research and Analysis
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
1000
10
20
30
40 50 6070
80
90
100060% 20%60% 20%
Testing and Quality Assurance
New Product Development
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Market Penetration & Growth
Top 3 Sectors – highest growth rate
Average Tenure
Domain
Market Penetration FY17: 6.8 %
Growth Forecast FY18: 18%
IT Flexi Staff in Captives is expected to grow by 18%
Infrastructure Management
Application Support and Maintenance
Testing and Quality Assurance
New Product Development
67% 44%44% 33%
IT/ITES BFSI Healthcare
0-6 months 22%
1 – 2yrs 33%6 months-1yr 67%
> 2yrs 11%
Mumbai 11% Hyderabad
13%
NCR 14%
Bangalore 36%
KPMG Research and Analysis
Indian IT Staffing Report 2017 | 49
Karnataka
KPMG Research and Analysis
Average Tenure
Karnataka
Domain
Flexi Staff Size
Experience Level
Reasons to Hire
Market Penetration
Karnataka IT Flexi Staffing Market Size:
$ 1.05 Bn
0-6 months0-2yrs
Flexibility Niche Skillsets Just in Time
29% 57% 43%
11%8%
1 – 2yrs5-8yrs 33%26%6 months-1yr2-5yrs 22%65%
> 2yrs8+ yrs 55%1%
IT Flexi Staff Penetration:
6.9%
IT Flexi Staff Size (000’s):
90
Infrastructure Management
56%
New Product/ Project Development
44%
Indian IT Staffing Report 2017 | 51
Maharashtra
KPMG Research and Analysis
Average Tenure
Maharashtra
Domain
Flexi Staff Size
Experience Level
Reasons to Hire
Market Penetration
Maharashtra IT Flexi Staffing Market Size:
$ 0.48 Bn
0-6 months0-2yrs
Flexibility Niche Skillsets Just in Time
31% 62% 62%
16%37%
1 – 2yrs5-8yrs 32%17%6 months-1yr2-5yrs 37%44%
> 2yrs8+ yrs 43%2%
IT Flexi Staff Penetration:
5.0%
IT Flexi Staff Size (000’s):
41
Infrastructure Management
62%
New Product/ Project Development
58%
52 | Indian IT Staffing Report 2017
National Capital Region (NCR)
KPMG Research and Analysis
Average Tenure
NCR
Domain
Flexi Staff Size
Experience Level
Reasons to Hire
Market Penetration
NCR IT Flexi Staffing Market Size: $ 0.23 Bn
0-6 months0-2yrs
Flexibility Niche Skillsets Just in Time
33% 67% 33%
25%41%
1 – 2yrs5-8yrs 25%19%6 months-1yr2-5yrs 75%37%
> 2yrs8+ yrs 25%3%
IT Flexi Staff Penetration:
3.0%
IT Flexi Staff Size (000’s):
20
Infrastructure Management
86%
New Product/ Project Development
57%
Indian IT Staffing Report 2017 | 53
Telangana
KPMG Research and Analysis
Average Tenure
Telangana
Domain
Flexi Staff Size
Experience Level
Reasons to Hire
Market Penetration
Telangana IT Flexi Staffing Market Size:
$ 0.20 Bn
0-6 months0-2yrs
Flexibility Niche Skillsets Just in Time
50% 75% 50%
20%40%
1 – 2yrs5-8yrs 40%10%6 months-1yr2-5yrs 40%47%
> 2yrs8+ yrs 60%3%
IT Flexi Staff Penetration:
3.1%
IT Flexi Staff Size (000’s):
17
Infrastructure Management
50%
New Product/ Project Development
25%
54 | Indian IT Staffing Report 2017
56 | Indian IT Staffing Report 2017
Glossary
Digital Ledger which records transactions made in cryptocurrency
Application of principles and elements of game playing in non-game contexts
Interdisciplinary field about scientific methods, processes, and systems to extract knowledge or insights from data in various forms, either structured or unstructured
Science of getting computer learn and act without being explicitly programmed
Process of creating a physical object from a three-dimensional digital model
Provision of computing devices like storage, server, computers, software and more over the internet
Machines being able to carry out tasks in a smart way
Connecting devices over the internet which can seamlessly communicate with us and among each other
Branch of Technology that deals with the design, construction and operations of Robots
Processes, practice and technologies desgined to protect network and devices from attack
KPMG Research and Analysis
Block Chain
3D Printing
Artificial Intelligence
Internet of Things (IOT)
Cloud Computing
Machine Learning
Robotics
Gamification
Data Science
Cyber Security
Methodology Note
KPMG Research and Analysis
Designation of Respondents
Industry Sectors of the Respondents
Manufacturing
The report is based on responses and insights received from different organizations on IT Flexi Staffing. The respondents are company executives head of the IT or HR Department. The respondents are from 7 different Industry sectors. Sources like NASSCOM, Aon Hewitt and StaffingIndustry.com have been used to get some data points.
CIO
HR-Head
CTO
VP - IT
CHRO
IT-Head
IT/ITES
Startups
Chemical
Retail
Healthcare
BFSI
Indian IT Staffing Report 2017 | 57
Key Points Considered in the Report
Inferences are drawn on the basis of responses received from organizations and analysis done by KPMG
Base Data to calculate and forecast market size has been taken from Nasscom, Datagov.in and other sourcesavailable on public domain
Percentages don’t add up to 100 where respondents have chosen more than one option
IT Flexi Staff Market Penetration is with respect to IT Headcount in a industry
Base Data of Indian IT Market and State has been used from NASSCOM report
Dollar Rate is taken to be INR 65 and is assumed to be constant till 2021
Average Bill Rate per IT Flexi Staff for Staffing Companies is 7.6 LPA as per KPMG Research and Analysis
Overall Market Size and Penetration is calculated on the basis of companies interviewed in 7 different sectors IT/ITES, BFSI, Manufacturing, Retail, Healthcare, Chemical Oil and Gas, Startup & Ecommerce only
58 | Indian IT Staffing Report 2017
KPMG Research and Analysis
About Indian Staffing Federation
Indian Staffing Federation founded in 2011 is the apex body of the staffing industry with one goal - Staffing India’s Growth.
Staffing, an established form of outsourcing globally, is yet to be recognized and adopted as an effective means of running businesses in India. The Staffing Industry provides a platform for recognized employment, work choice, even compensation, annual benefits and health benefits for the temporary workforce that constitutes around 40% of India’s total workforce.
The purpose of ISF is to enhance long-term growth of the staffing industry and to ensure its continued ability to make positive contributions to the economy and society. The principal focus of the Federation’s activities is to strengthen triangular employment relationships, in which the staffing company is the employer of the temporary worker, who works under the supervision of the user company.
ISF today comprises of over 85 member companies who collectively provide employment to over 900,000 people throughout the country.
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